Finding Text
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585.
Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.